Sumitomo Corporation Agrees to Transfer a Portion of Shares in S.C. Cement

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President, and Chief Executive Officer: Shingo Ueno) has agreed to transfer a 70% equity stake in its wholly owned subsidiary, S.C. Cement Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Junji Kitao), to Sumitomo Osaka Cement Co., Ltd. (Head Office: Minato-ku, Tokyo; Representative Director and President: Hirotsune Morohashi). The transfer is scheduled to be completed on October 1, 2026, subject to the completion of the required procedures, including approvals from the relevant authorities, and the fulfillment of other agreed conditions.

S.C. Cement was established in 1988 as a trading company responsible for the domestic sales of cement-related products within the Sumitomo Corporation Group. Since then, it has contributed to Japan's social infrastructure by supplying products for diverse projects, from bridges and roads to commercial and public facilities. In addition to its distribution business for cement-related products, the company has expanded operations to include eight ready-mixed concrete manufacturing plants across Japan.

The cement industry business environment is currently undergoing a period of significant change, driven by shifts in industrial structures and growing societal demands for sustainability. Against this backdrop, Sumitomo Corporation has been reviewing the optimal business structure to further strengthen its operational foundation and achieve sustainable growth. As a result, Sumitomo Corporation concluded that transferring a portion of S.C. Cement's shares to Sumitomo Osaka Cement represents the best path forward, combining Sumitomo Osaka Cement's technological capabilities and business foundation with S.C. Cement's nationwide distribution network and ready-mixed concrete manufacturing capabilities.

Following the transfer, Sumitomo Corporation will continue to be involved in S.C. Cement's business while working closely with Sumitomo Osaka Cement to advance its cement business both in Japan and overseas. Leveraging Sumitomo Corporation's global network, the companies will also work to strengthen stable supply systems, improve operational efficiency and create new value in the construction materials sector.

The impact of this share transfer on Sumitomo Corporation's consolidated financial results is expected to be minimal.

Following the transfer, S.C. Cement is expected to have the following corporate structure:

Overview of S.C. Cement

Overview of Sumitomo Osaka Cement